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  1. #1
    WiiChat Member romj's Avatar
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    Doh! Wii shortage costing Nintendo $1.3 BILLION!

    Doh! Wii shortage costing Nintendo $1.3 BILLION!

    Holy cash cow! According to an article in the New York Times, the shortage of Wii consoles in North America is going to cost Nintendo up to $1.3 BILLION in potential profits. There arenít enough zeroes on my calculator to handle that kind of figure, and Iíve run out of fingers and toes to count on.

    The NYT is supposed to be a respectable paper, so rather than rephrasing their text letís do them the honour of a full quotation:

    The unsated demand is costing Nintendo more than face. Estimates from industry analysts and retailers indicate that the company, which is based in Kyoto, Japan, is giving up $1 billion or more in sales in the ever-important holiday retail season, not including sales of games for those unbuilt consoles.

    ďItís staggering,Ē said James Lin, senior analyst at the MDB Capital Group in Santa Monica, Calif., who estimates that Nintendo is leaving $1.3 BILLION on the table. ďThey could easily sell double what theyíre selling.Ē

    Between the Wiiís debut last November and this Sept. 30, Nintendo sold 13.1 million consoles. It ships 1.8 million a month worldwide ó a third of those to North America ó up from one million a month earlier this year.

    If these figures are true, the offices of Nintendo must be resounding with the slapping of foreheads. Itís simply unbelievable. All that Christmas moolah, just there for the taking, and the company is in no position to capitalise on it. Itís especially laughable when reading this other tidbit:

    When it comes to its planning, Nintendo says it has not done anything wrong.

    Maybe, maybe not. Being overly conservative in your estimation of market demand can certainly be classified as a mistake, if not downright incompetent. If heads donít roll over this continuing debacle itíll be a Christmas miracle.

    http://www.wiiwii.tv/2007/12/14/doh-...llion-dollars/

    http://www.nytimes.com/2007/12/14/te...in&oref=slogin


    No, I don't this is deliberate that there is a shortage, but a mistake, an underestimation on Nintendo's part. A very COSTLY one!

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  3. #2
    Waluigi's #1 Fan! FRuMMaGe's Avatar
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    Doesn't matter. They can't produce enough for that much anyway. It's not a bad thing that their product is so popular

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  4. #3
    WiiChat Member romj's Avatar
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    Quote Originally Posted by FRuMMaGe
    Doesn't matter. They can't produce enough for that much anyway. It's not a bad thing that their product is so popular

    I'm not trying to imply that it's BAD. I posted this to show that it's not on porpose that Nintendo can't keep up with demand, cuz the shortage is HURTING them, not helping them.

  5. #4
    Waluigi's #1 Fan! FRuMMaGe's Avatar
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    Quote Originally Posted by romj
    I'm not trying to imply that it's BAD. I posted this to show that it's not on porpose that Nintendo can't keep up with demand, cuz the shortage is HURTING them, not helping them.
    It's not HURTING them. HURTING them would imply they were LOSING money.

    They are still gaining money, just not as much as they could if they were producing more consoles.

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  6. #5
    WiiChat Member romj's Avatar
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    Quote Originally Posted by FRuMMaGe
    It's not HURTING them. HURTING them would imply they were LOSING money.

    They are still gaining money, just not as much as they could if they were producing more consoles.
    Ahh! I understand you now.

  7. #6
    Waluigi's #1 Fan! FRuMMaGe's Avatar
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    Quote Originally Posted by romj
    Ahh! I understand you now.
    Yep. It's like saying that if I give you £5, I am hurting you because i'm not giving you £10.

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  8. #7
    Cogito Ergo Sum JAKE196's Avatar
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    hmm. . . I wonder if the shortage conspiracy threads will stop now. . . . . . Probably not. . . .
    Wii games: Super Mario Galaxy, Metroid Prime 3, Resident Evil 4, Zelda TP, SSX: Blur, Excite Truck, The Godfather, and Mario Kart Wii
    PC games: Call of Duty 4, Halo 1, UT3, F.E.A.R., and The Orange Box.
    PS3 games: Ratchet and Clank F.T.O.D., Resistance 2, Wipeout HD, and MGS4.

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